Opportunity Information: Apply for RDRUS 26 DWS2
The Rural Decentralized Water System (DWS) Grant Program is a Rural Utilities Service funding opportunity designed to improve basic household water and wastewater infrastructure for people in rural areas who have low to moderate incomes. Instead of awarding money directly to homeowners, the program awards grants to eligible nonprofit organizations. Those nonprofits then use the grant to set up and operate a revolving loan fund, meaning the nonprofit makes loans and sub-grants to eligible individuals, repayments recycle back into the fund, and the money can be used again to help additional households over time. The overall goal is to make essential, individually owned systems more affordable and to reduce health and environmental risks that come from failing wells or inadequate wastewater disposal.
Through the revolving fund created by the nonprofit grantee, eligible individuals can receive loan and/or sub-grant assistance to construct, refurbish, rehabilitate, or replace decentralized household water well systems and individually owned wastewater systems (such as septic-related components). For water well projects, eligible costs extend up to the "point of entry" to the home, defined as the junction where water enters the home’s internal plumbing after being pumped from the well. For wastewater projects, the comparable boundary is the "point of exit," defined as the junction where wastewater leaves the home’s internal collection plumbing and flows into the septic tank and drain field. This boundary language matters because it clarifies that the program is aimed at the external well or septic infrastructure serving the home, not general household plumbing upgrades inside the residence.
The grant also recognizes that nonprofits need capacity to run a financing program, so DWS funds may be used by the nonprofit recipient to cover certain administrative expenses tied to providing and managing the DWS loans and sub-grants. This typically includes the kinds of costs associated with operating a lending/sub-grant program responsibly, such as underwriting, servicing, compliance, and outreach, as allowed under the program rules.
This opportunity is a discretionary grant (Funding Opportunity Number RDRUS 26 DWS2; CFDA 10.862) administered by USDA Rural Development’s Rural Utilities Service under the community development activity category. The posting indicates an expected 10 awards, with an application closing date of 2026-09-30. The award ceiling is listed as 0, which generally signals that the maximum award amount is not stated in the notice itself and applicants should rely on the program webpage or official guidance for current limits, typical award sizing, and other constraints.
Eligibility is centered on nonprofit organizations as the applicants and recipients of the federal grant, while the ultimate beneficiaries are low- to moderate-income individuals who own or will own the well or wastewater system being assisted. Because the specific eligibility requirements and definitions (including what qualifies as rural, income thresholds, eligible nonprofit types, and program conditions) are detailed in official guidance, applicants are directed to consult the USDA program page for the most current requirements and application instructions: https://www.rd.usda.gov/programs-services/water-environmental-programs/rural-decentralized-water-systems-grant-program.Apply for RDRUS 26 DWS2
- The Rural Utilities Service in the community development sector is offering a public funding opportunity titled "Rural Decentralized Water System Grant Program" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.862.
- This funding opportunity was created on 2026-07-28.
- Applicants must submit their applications by 2026-09-30. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The number of recipients for this funding is limited to 10 candidate(s).
- Eligible applicants include: Others.
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Rural Decentralized Water System (DWS) Grant Program FAQs
1) What is the Rural Decentralized Water System (DWS) Grant Program?
The Rural Decentralized Water System (DWS) Grant Program is a USDA Rural Development Rural Utilities Service funding opportunity intended to improve basic household water and wastewater infrastructure for people in rural areas with low to moderate incomes. The program focuses on essential, individually owned systems and aims to reduce health and environmental risks associated with failing wells or inadequate wastewater disposal.
2) Who receives the federal grant money?
The federal grant is awarded to eligible nonprofit organizations, not directly to individual homeowners.
3) If homeowners do not receive the grant directly, how do households get help?
Nonprofit grantees use the federal grant to create and operate a revolving loan fund. Through that fund, the nonprofit provides loans and/or sub-grants to eligible individuals for qualifying well and wastewater projects. As loans are repaid, repayments go back into the revolving fund so the money can be used again to help additional households over time.
4) What is a revolving loan fund in this program?
In this program, a revolving loan fund is a financing pool managed by the nonprofit grantee. The nonprofit makes loans and sub-grants to eligible individuals; when loan repayments come back, those dollars are recycled back into the same fund and can be re-lent to support more households.
5) What types of household systems can be funded?
Assistance can support decentralized household water well systems and individually owned wastewater systems (including septic-related components). The funds can be used to construct, refurbish, rehabilitate, or replace eligible systems.
6) What kinds of projects are eligible for water well assistance?
Eligible individuals can receive loan and/or sub-grant assistance to construct, refurbish, rehabilitate, or replace decentralized household water well systems. Eligible costs extend up to the “point of entry” to the home, as defined by the program.
7) What does “point of entry” mean for water well projects?
For water well projects, the “point of entry” is the junction where water enters the home’s internal plumbing after being pumped from the well. This clarifies that the program is aimed at the external well infrastructure serving the home, rather than general plumbing improvements inside the residence.
8) What kinds of projects are eligible for wastewater (septic) assistance?
Eligible individuals can receive loan and/or sub-grant assistance to construct, refurbish, rehabilitate, or replace individually owned wastewater systems, such as septic-related components. Eligible costs extend up to the “point of exit” from the home, as defined by the program.
9) What does “point of exit” mean for wastewater projects?
For wastewater projects, the “point of exit” is the junction where wastewater leaves the home’s internal collection plumbing and flows into the septic tank and drain field. This boundary language signals that the program targets the external wastewater disposal infrastructure, not general plumbing upgrades inside the residence.
10) Does the program pay for plumbing inside the house?
The provided program description emphasizes boundaries at the “point of entry” (water) and “point of exit” (wastewater). This indicates the program is focused on the external well or septic infrastructure serving the home, rather than general household plumbing upgrades inside the residence.
11) Who is eligible to apply for the grant?
Applicants for the federal grant are nonprofit organizations. The specific nonprofit eligibility requirements and definitions are described in official USDA guidance.
12) Who are the intended beneficiaries of the program?
The ultimate beneficiaries are low- to moderate-income individuals in rural areas who own or will own the well or wastewater system being assisted.
13) Can the nonprofit use grant funds for administrative costs?
Yes. The program recognizes that nonprofits need capacity to run a financing program. DWS funds may be used by the nonprofit recipient to cover certain administrative expenses tied to providing and managing DWS loans and sub-grants, such as costs related to underwriting, servicing, compliance, and outreach, as permitted under program rules.
14) What is the Funding Opportunity Number and CFDA for this opportunity?
This opportunity is listed as Funding Opportunity Number RDRUS 26 DWS2 and CFDA 10.862.
15) What agency administers the DWS Grant Program?
The program is administered by USDA Rural Development’s Rural Utilities Service.
16) What type of grant is this?
The opportunity is described as a discretionary grant.
17) How many awards are expected?
The posting indicates an expected 10 awards.
18) What is the application closing date?
The application closing date shown is 2026-09-30.
19) What is the maximum award amount (award ceiling)?
The award ceiling is listed as 0. This generally indicates that the maximum award amount is not stated in the notice itself and that applicants should consult the program webpage or official guidance for current limits, typical award sizing, and related constraints.
20) Where can applicants find the most current eligibility requirements and application instructions?
Applicants are directed to consult the USDA program page for the most current requirements and application instructions: https://www.rd.usda.gov/programs-services/water-environmental-programs/rural-decentralized-water-systems-grant-program.
21) Why does the program emphasize rural and income-based targeting?
Based on the description provided, the program is designed to make essential individually owned water and wastewater systems more affordable for rural households with low to moderate incomes, while also reducing health and environmental risks from failing wells or inadequate wastewater disposal.
22) Does this grant fund community-wide water or sewer systems?
The description provided focuses on decentralized household water wells and individually owned wastewater systems (such as septic-related components). It does not describe funding for community-wide centralized systems within this opportunity summary.
23) What is the stated program category?
The opportunity is listed under the community development activity category.
24) What does it mean that beneficiaries “own or will own” the system?
The description indicates the assistance is intended for low- to moderate-income individuals who own or will own the well or wastewater system being assisted, meaning the program is geared toward systems tied to individual household ownership rather than systems owned by another entity.
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